http://www.student--creditcards.com Helping students pick a credit card Tue, 01 Jun 2010 02:46:54 +0000 http://wordpress.org/?v=2.8.4 en hourly 1 http://www.student--creditcards.com/2010/05/is-there-such-a-thing-as-good-debt/ http://www.student--creditcards.com/2010/05/is-there-such-a-thing-as-good-debt/#comments Tue, 01 Jun 2010 02:46:54 +0000 admin http://www.student--creditcards.com/2010/05/is-there-such-a-thing-as-good-debt/ I remember one day in my first year economics class at NYU, my professor was talking about deciding to purchase something based on individual preferences and perceptions. He used the example of paying for college, explaining that in most cases it is a good decision to incur the debt of paying for college because it will increase the value of your skills, therefore increasing your prospective income. The future value of that college education would be greater than the debt you would incur in the present – meaning that you could pay off the debt quite easily. He added on to the end, “and NYU students have an advantage because they often have much higher salaries than most.” He described this kind of debt as “good debt,” – an investment.

I loved this. I loved that it justified my decision to take out a giant student loan to go to NYU and live in the big city. I loved that it calmed my anxieties about incurring such a large debt at the young age of 18. But, I kept thinking of how I could have bought a quaint house with the same loan I took out for college, and wondered if it was really the right decision.

What I have learned from reading Rich Dad, Poor Dad, my research and my discussions with my financial guru friends is that a college education isn’t necessarily “good debt.” This concept relies on making an investment that will have high returns in the future – increasing your value and wealth. However, this is an incomplete definition.

The investment should provide you with tools to increase your passive income. The way my professor explained it, you would still be working for a monthly salary, not gaining passive income that would increase your financial stability. Therefore, that debt would still be a liability instead of becoming an asset. Monthly income is not considered an asset.

Now, I am not saying that you shouldn’t go to college. The education you receive can be vital and extremely valuable. But I highly suggest organizing your goals for your career and researching your desired career. How much, on average, will you make? How quickly can you work your way up a pay scale? How quickly would you like to pay off your debt? What kind of payment plan will that require? Does that work with your monthly salary?

The value of your college education should be weighed with your intended career choice. And instead of working to pay off your education, find ways that you can make your college education work for you. Find means of creating a passive income with your talents and strengths. Then, you can pursue your desired career without selling your soul for healthcare or a monthly salary. You can be more selective in which jobs you pursue and have more control over where your career goes.

So, if you decide to go to college, do not simply accept that it is a “good debt.” If you do not educate yourself about your personal finances and find ways to apply your education to build your passive income and financial stability, it is NOT a good debt. It will only remain a liability that influences your choices, both in life and your career.

Why don’t they teach this in college?



By: Jess Shorland ]]> http://www.student--creditcards.com/2010/05/is-there-such-a-thing-as-good-debt/feed/ 0 http://www.student--creditcards.com/2010/05/student-debt-help/ http://www.student--creditcards.com/2010/05/student-debt-help/#comments Thu, 20 May 2010 15:55:32 +0000 admin http://www.student--creditcards.com/2010/05/student-debt-help/ With the cost of education rising and the easy availability of credit, student debt help is something that more young people are seeking. Student debt relief is available, but as a student you will first want to take the time to understand what type of debt you have and your best option for eliminating that debt.

As a student, your most common types of debt are student loans and consumer accounts, better known as credit card debt. These debts are handled differently when it comes to getting debt help. Credit card debt must be repaid in full for it not to have a serious negative effect on your credit.

This gives you the option of increasing your income or decreasing your expenses. If you can do both, you will have your debt paid off that much sooner. This really is the best way for you to get out of debt, but not all students are in the position where they can use this alternative. Credit counseling is also a choice that you have, provided you are not more than 3 months behind and you are able to make a 2 percent payment on your balances each month.

However, if you have graduated and are having trouble paying your student loans, they cannot be placed in credit counseling. Credit card accounts, utilities and medical bills can be placed in CCCS. A credit counseling service will consolidate all of your unsecured debt and you will make a monthly payment to the credit counseling agency. Your debt counseling company will then disburse this payment to your creditors.

Credit counseling may affect your credit score at first, but as you begin to reduce your debt and make your payments on time, you will see it increase. The most important aspect of getting out of debt is addressing the problem early. So many people wait until the situation has become critical and as a result their options are limited.

As far as your student loans go, you will want to talk to your student loan company and see what kind of hardship programs they have available. They are normally willing to work with you as you try to get your finances stabilized. Ignoring student loan payments is one of the worst things you can do. This is actually true for any payment. Many companies have programs that can assist with student debt help, but you are going to have to talk to your creditors in order to know what debt relief options are available.



By: Marjorie Salada ]]> http://www.student--creditcards.com/2010/05/student-debt-help/feed/ 0 http://www.student--creditcards.com/2010/05/how-to-be-forgiven-student-loan-debt/ http://www.student--creditcards.com/2010/05/how-to-be-forgiven-student-loan-debt/#comments Tue, 18 May 2010 23:48:13 +0000 admin http://www.student--creditcards.com/2010/05/how-to-be-forgiven-student-loan-debt/
If you’ve already consolidated your student loans and no matter how many years you pay, the interest addition never makes the balance go down, is there any way to be forgiven this loan debt?
Please help. I’m past middle age, a social worker, and these student loans make me think that taking the gas pipe is the only solution to get out from under.
]]> http://www.student--creditcards.com/2010/05/how-to-be-forgiven-student-loan-debt/feed/ 7 http://www.student--creditcards.com/2010/05/getting-the-best-student-loan-help-possible/ http://www.student--creditcards.com/2010/05/getting-the-best-student-loan-help-possible/#comments Tue, 18 May 2010 00:33:14 +0000 admin http://www.student--creditcards.com/2010/05/getting-the-best-student-loan-help-possible/ If you are up to your ears in college debt, you may fear that it is too late to take advantage of student loan help. In reality, however, there are many options available if you know where to look. Even if you are currently in default or you simply cannot afford to pay, there are many, many programs designed to get you the best loan help for your situation.

The best way to get student loan help is to take action. This can be scary. After all, debt is intimidating, and college loan debt makes up the majority of most college graduates’ debt load. But you do not need to be frightened. It is in the lenders’ best interests to work with you on these loans. For the most part, you will find that they are accommodating and as eager to get you out of this situation as you are yourself.

First, contact your lender. Simply making contact with the lender can give you some serious relief and breathing room. If you have temporarily been unemployed but are not employed again, or if you have had a major family emergency, some lenders will lower your payments to whatever is manageable. In some instances, they will even let you skip a few months’ payments. You just have to be honest, polite and straightforward about your situation. Admittedly, this can be embarrassing. To get real student loan help, however, you are going to have to ask.

Now that you have a little time to breathe, take a deep breath. Then, start looking at your student loan help options. You will have a variety of steps that you can take. You might decide to enroll in an Income Based Repayment (IBR) program. These programs are designed to help you support your family while still making a dent in your debt. Some forms also include a forgiveness program if you pay reliably for 10 years. Also check out your student loan forgiveness eligibility. This is one of the best kinds – and least publicized – forms of college loan help. If you work in a public service job – one that serves a public need or is involved in community protection – then you may qualify for partial or total student loan forgiveness. These careers include doctors who do public service work, lawyers who work with needy clients and of course policemen, firemen and various community defense positions.

When you are looking for student loan help, it is okay to be optimistic. This is one of the best times in history to look for help with your student loan debt. Because so many people are having serious trouble repaying their loans, the lenders are unusually willing to work with borrowers who are willing to pay if they can find any way to do so. In addition, there are more student loan help programs available to you today than have ever been in existence before.



By: Butler J Raines ]]> http://www.student--creditcards.com/2010/05/getting-the-best-student-loan-help-possible/feed/ 0 http://www.student--creditcards.com/2010/05/student-debt-and-student-loans/ http://www.student--creditcards.com/2010/05/student-debt-and-student-loans/#comments Wed, 12 May 2010 08:38:36 +0000 admin http://www.student--creditcards.com/2010/05/student-debt-and-student-loans/ The statistics show that more and more students are graduating from university with significant debt. The debt levels are growing year on year and many students will be paying them off for years after they graduate. It seems that the consumer addiction to credit and spending has effected the student population just as much as every one else. The fact that most students are not earning anything, and are living either on funds provided by their parents, or on money borrowed, they continue to spend millions each year.

These costs are spread over a variety of areas. Accommodation and other living expenses represent the largest portion of the expenditure. Added to this is travel to and from university, holiday and summer travel expenses, and entertainment. While students are generally financially responsible and not as out of control as many patents would have you think, they do continue to spend a huge proportion of their money on entertainment and socialising.

Employment

Many students will also be working part time during their studies. There are a lot of jobs available and finding one is not a problem for most students who genuinely want one. Employers recognise their flexibility and willingness to work unsociable hours and also that they will generally be happy to accept minimum or close to minimum wage. Therefore, while the jobs are there, they generally pay little, and students who work more than 10-20 hours a week are probably putting a serious strain on their studies and risking their future chances of success.

Most student debt is comprised of student loans. The student loans company based on eligibility criteria provides these. These loans are cheaper than credit that is available on the market from high street banks and have other significant advantages for students. Firstly, students will not have to start repaying the loans until they are earning a set minimum amount, currently around the £15,000 mark. Then there is also the fact that loan repayments are calculated according to earnings levels and are therefore always reasonably affordable. Students are giving as much time as they need to repay the loans and the interest rates, as said before, are very favourable.

Overdrafts

As well as these student loans however, many students will also have other forms of debt. Most banks are offering interest free student overdrafts of up to £2,000 and there are not many students who do not use this up pretty quickly. Then there are bank loans, store cards and credit cards. All of these represent a significant amount of debt that most students are living with.



By: Joseph Kenny ]]> http://www.student--creditcards.com/2010/05/student-debt-and-student-loans/feed/ 0 http://www.student--creditcards.com/2010/05/paying-for-college-without-running-up-loan-debt/ http://www.student--creditcards.com/2010/05/paying-for-college-without-running-up-loan-debt/#comments Wed, 05 May 2010 17:36:15 +0000 admin http://www.student--creditcards.com/2010/05/paying-for-college-without-running-up-loan-debt/ The vast majority of students take out a series of loans to see them through college and often end up with a huge debt which then takes them many years to pay off. So, is it possible to pay for a college education without having to burden yourself with loan debt?

The simple answer is yes, but it does take a little bit of planning.

If you start thinking about college far enough in advance then you can begin putting money aside into a college fund and perhaps even enlist the help of parents and other relatives to make regular contributions to your fund. Now this is almost certainly not going to be enough to see you through college, but it can help a great deal.

The next excellent source of money for many students is scholarships and grants. Your own college can be a good place to start as many colleges will have grants and scholarships available just for their own students. Beyond this there are thousands of different sources of grant and scholarship funding available both locally and nationally and it is simply a matter of hopping online and searching for those which you are eligible to apply for.

Having got your pool of free money it is then time to start thinking about earning the money you need to meet your college fees and living expenses and, despite the fact that many people will tell you that you will not have time to fit in a job and that it will detract from your studies, evidence shows that the opposite is true. Most students who work a regular part-time job in college have to organize their time well to fit everything in and the result is that they usually end up carrying their work discipline across to their studies and frequently end up with better grades as a result. Another great benefit is that it also teaches you the true value of money and having to work for an hour to earn just a few dollars makes you far more careful about how you spend that money.

Think carefully however about just what sort of job you want and try to pick a job that you are interested in and that is going to pay well. There is nothing wrong of course with serving burgers in a local fast food restaurant, but if you have some skills then it is far better to put these to use if you can. Remember too that many companies in the area will probably be very happy to employ part-time students and the Internet also provides an excellent source of income, which also has the advantage of normally allowing you to work when it suits you.

Finally, do not forget that some colleges are a lot more expensive than others and will not necessarily provide you with a better education than a cheaper alternative. It might be thought that attending a particular college will provide you with better earning potential but this really is not true. In the vast majority of cases your future prospects have much more to do with how hard you work at college and beyond than they do with the name of the college you attend.



By: Donald Saunders ]]> http://www.student--creditcards.com/2010/05/paying-for-college-without-running-up-loan-debt/feed/ 0 http://www.student--creditcards.com/2010/04/how-to-manage-money-4-quick-tips-to-help-reduce-college-loan-debt-part-2-of-2/ http://www.student--creditcards.com/2010/04/how-to-manage-money-4-quick-tips-to-help-reduce-college-loan-debt-part-2-of-2/#comments Fri, 30 Apr 2010 09:16:37 +0000 admin http://www.student--creditcards.com/2010/04/how-to-manage-money-4-quick-tips-to-help-reduce-college-loan-debt-part-2-of-2/ In my last post I talked about how college was one of the most rewarding experiences in my life but it also left me with a fair amount of debt. I realized that it doesn’t take much to accumulate debt, especially when your income is next to nothing. It also doesn’t take long to become despondent when you see your personal finances dip further and further into the red. There is hope! I have created a list of four tips can be useful in helping you start to erase your college debt!

1. The first thing you need to do is discover how many loans you have. If you live in the United States log onto the Website for the National Student Loan Data System. There’s a lot of important information at this site that will show how much you owe and from whom. Before you can review the details at the NSLDS you will need to obtain a four-digit PIN from the Department of Education.

2. Consolidate your College Debt. This is very important. It will help eliminate multiple payments each month and lower the interest rate. It’s easy lose track of your budget if you are paying off four or five different loans.

3. Renegotiate the rate and term your of loan: It’s a fairly simple formula that the longer you are paying off your debt, the more interest you will pay in the long run. It may not be feasible for you to pay it all off in one or two years but the more quickly you do so, the less interest you will pay on your college debt in the long run – even if it is at a higher interest rate.

$20,000 at 7% for 10 years equals $7, 866 in interest.

$20,000 at 13% for 5 years equals $7, 304 in interest.

4. Don’t miss any payments. Ever. This is probably one of the most important pieces of advice I can give. Not only will missing a payment damage your credit rating but the penalties will add up quickly. Chances are your college debt won’t be the only loan you have in your life and you’re going to need a quality credit rating for other major purchases such as house or a car or for that much deserved vacation. That’s why it’s important to negotiate an amount that is manageable so you can make every single payment when it is due and not get in over your head when other expense’s come your way.

These four tips may seem simple enough but sometimes it’s easy to make mistakes, especially when you are busy at your brand new job. Take a day as soon as you can to start with these tips. Most financial institutions are now open six days a week so it is important that you take the time to fast track your financial situation. I challenge you to start with these steps this week. You would be surprised how much more money you will have by the end of next month if you take care of it now. Good luck eliminating your college debt and be sure to save a few dollars for that beautiful new glass frame for your diploma.

Bye for now!



By: Brandon Schmid ]]> http://www.student--creditcards.com/2010/04/how-to-manage-money-4-quick-tips-to-help-reduce-college-loan-debt-part-2-of-2/feed/ 0 http://www.student--creditcards.com/2010/04/when-you-dont-get-the-big-payoff-for-your-monstrous-student-debt-how-do-you-get-a-payment-you-can-afford/ http://www.student--creditcards.com/2010/04/when-you-dont-get-the-big-payoff-for-your-monstrous-student-debt-how-do-you-get-a-payment-you-can-afford/#comments Wed, 28 Apr 2010 09:34:00 +0000 admin http://www.student--creditcards.com/2010/04/when-you-dont-get-the-big-payoff-for-your-monstrous-student-debt-how-do-you-get-a-payment-you-can-afford/
My daughter has a monstrous student debt – she hasn’t been able to make it pay off and is now very over qualified although she is virtually unemployable at a professional level because she hasn’t passed the bar. She can’t afford a car, she can’t afford to live, she can’t afford her debt. How does she get this on an easy payment for the rest of her life plan – and still be able to have a life? Ideas please. I co-signed and it is also on my plate. I’m not at all sure she has done everything she has the power to do, she may not know the answer. Its not an easy discussion to have with her, she’s stressed to the max.
]]> http://www.student--creditcards.com/2010/04/when-you-dont-get-the-big-payoff-for-your-monstrous-student-debt-how-do-you-get-a-payment-you-can-afford/feed/ 4 http://www.student--creditcards.com/2010/04/student-loan-debt-relief-debt-solution-options-to-help-students-get-out-of-debt/ http://www.student--creditcards.com/2010/04/student-loan-debt-relief-debt-solution-options-to-help-students-get-out-of-debt/#comments Sat, 24 Apr 2010 21:19:09 +0000 admin http://www.student--creditcards.com/2010/04/student-loan-debt-relief-debt-solution-options-to-help-students-get-out-of-debt/ When It Comes To Student Loan Debt… You’re Not Alone!

Escalating college tuitions are making student loan debt an eerie fact of life for students everywhere. The average cost of tuition for 4-year colleges has more than doubled over the past 30 years. By the time you add up the cost of tuition, plus room and board, the cost of attending a private college hovers around $29,026 per year and around $12,127 at four-year public universities. Consequently, debt from educational loans has reached overwhelming epic proportions. As we face these uncertain economic times, more individuals are feeling the pressure of the costs of education.

The facts don’t lie; graduates are having a hard time coping with debt and are in need of debt relief. The percentage of Americans with outstanding student loans that say this debt is preventing them from making major purchases, such as a house or a car is increasing. Thirty percent of those polled say their student loan debt is a major burden. Once an individual becomes part of the student loan abyss, they must tread lightly. If this debt is not managed properly, it can not only lead to bad credit, it can also lead to loss of eligibility for future federal aid, and the possibility of wage garnishment and the withholding of tax refunds.

I truly believe it is time for college students and graduates to rally together and establish a grassroots organization that lobbies for student loan reform. Unless that happens, the powers that be will gladly sit back and watch as the student loan debt meter continues swelling to epic proportions.

If you are having challenges with paying your student loan, there is help with nonprofit organizations such as American Student Assistance. They offer outreach and education, loan repayment counseling, budget planning, information on repayment options, and even help for borrowers who have defaulted on their loans.

If you have federal loans through the Direct Loan program, you may qualify for an income contingent repayment plan. Or, if your income isn’t sufficient to repay a federal loan, you can apply for an economic hardship deferment or forbearance, which would suspend or reduce your monthly payments. Just bear in mind that the interest will continue to multiply on student loans that are not federally subsidized. The important thing is to act now! Don’t wait until action is taken against you. To determine if you qualify for any these programs, check out the website Finaid.org

What We Have: Clear and Concise Paths To Help You End Your Debt Problem. You Won’t Find This kind of Guidance Anywhere Else, Not For Free.

Who It’s For: ANYONE who needs, wants and passionately desires to GET OUT of DEBT and live Debt Free without losing their sanity and dignity.

How To Get It: Simply click on the Get Out of Debt link and start rejoicing!



By: Joel Marks ]]> http://www.student--creditcards.com/2010/04/student-loan-debt-relief-debt-solution-options-to-help-students-get-out-of-debt/feed/ 0 http://www.student--creditcards.com/2010/04/what-is-the-most-that-you-have-in-student-loan-debt/ http://www.student--creditcards.com/2010/04/what-is-the-most-that-you-have-in-student-loan-debt/#comments Fri, 23 Apr 2010 04:29:56 +0000 admin http://www.student--creditcards.com/2010/04/what-is-the-most-that-you-have-in-student-loan-debt/
Are you able to make your payments? I am just curious what everyone else is doing. So far, I have about $20,000.00 in student loan debt for 4 years of school (I have a bachelors in psychology now). I am going on to graduate school and student loans are going to have to cover all those costs too, including me getting a used car for a few grand. Is everyone else spending all this student loan money too?
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